As illustrated, the S&P stalled just under its 200-day moving average last week before pulling in from resistance.

Looking ahead, the 1,090 area marks a near-term inflection point, while significant resistance holds at the 200-day, currently 1,105.

Moving to the Dow industrials
DJIA, +0.08%
its near-term view is similar.

Like the S&P, the Dow topped last week just under its 200-day moving average before drawing sellers in this area.

Looking ahead, initial resistance holds around 10,200, and is followed by the 200-day, currently 10,282.

As for the Nasdaq Composite
$COMPX
it's the only major U.S. benchmark positioned atop its 200-day moving average.

From current levels, initial resistance spans from 2,269 to 2,279, and is followed by modest overhead just above the 2,300 mark.

Widening the view to six months adds color.

On this wider view, the May breakdown has inflicted serious technical damage, though the Nasdaq has reasserted a posture atop the 200-day moving average.

Looking ahead, a sustained break back atop the January peak -- the 2,326 area -- would mark a more legitimate step toward placing the index on firmer technical footing.

Moving to the Dow, it's compressing between two significant technical areas:

Resistance at its 200-day moving average, currently 10,282.

Support at its five-month range bottom, spanning from the February trough of 9,835 to the flash-crash low of 9,870.

On a break back atop the 200-day moving average, the Dow's next resistance holds around the 2009 close of 10,428.

And the S&P 500's six-month view remains tenuous, at best.

From current levels, the index faces significant resistance as follows:

The S&P's 200-day moving average currently holds at 1,105.

The Sept. 29, 2008 close, the day the crash accelerated, rests at 1,106.

The 2009 close holds at 1,115.

The 50% retracement of the crash rests at 1,121.

Looking ahead, a sustained break atop this 16-point band would mark the first step toward neutralizing the May breakdown.

The bigger picture

As detailed above, significant technical damage was inflicted last month.

Namely, several major benchmarks have broken down, and an extended basing period would typically be expected before the next sustained upturn.

Yet also consider that despite recent volatility, the May price action was relatively technical, as illustrated by the SPDR Trust S&P 500's
SPY, +0.03%
chart.

The three arrows above highlight three failed technical tests:

Test one: The S&P 500 rises in early May to retest its 50-day moving average, topping within a point of this level.

Test two: On the subsequent breakdown, the index rises within a point of the January peak -- the 1,150 mark -- before selling off to new lows.

Test three: The S&P tops last week within two points of its 200-day moving average leading to this month's sluggish start.

And following the first two failures at resistance, the S&P has notched a lower low, more or less defining a new downtrend.

Looking ahead, significant resistance spans from S&P 1,100 to 1,120 an area that marks a major bull/bear battleground.

But against this backdrop, significant damage was inflicted last month, and all trends technically point lower until the S&P sustains a break atop this technical gauntlet.

Tuesday's watch list

The charts below highlight names well positioned technically. These are intended as radar screen names - sectors or stocks positioned to move near term. For the original comments on the stocks below, check out The Technical Indicator Library.

ETF

Symbol

Mon Close

Support

Resistance

United States Oil Fund

USO

$34.03

$33.00

$35.60

The United States Oil Fund
USO, +0.41%
is a proxy for crude-oil prices. It holds futures contracts in the commodity.

And technically speaking, oil has broken down.

As illustrated, the USO knifed straight through significant support last month driven by a sustained volume increase. The downdraft places it at 52-week lows, and looking ahead, rallies to the breakdown point will likely draw sellers.

More importantly, weakness in oil, along with most other commodities, suggests the global economy may be slowing, consistent with recent weakness in stocks.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.